Govt prepares gas for additional 2000Mw power generation

The Federal Government is set to produce gas that will generate at least 2000 megawatts (Mw) of power to boost electricity supply.

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, an industry operator said, is monitoring various gas infrastructure projects to ensure they are completed on record and put into operation to increase power supply by over 50 per cent.

Mrs Alison-Madueke, the source explained, has directed stakeholders handling various gas projects to expedite action to bring them on stream before long. “The government is working to consolidate on the gas supply expansion with an additional 500 million standard cubic feet per day of gas (mmscf/d), to support about 2000mw of power generation,” the minister said.

On how to accomplish the objective, the minister said: “The government is set to complete the critical expansion of the Escravos-Lagos pipeline to two billion standard cubic feet per day of gas (bscf/d) capacity from over 800mmscf/d.

“We want to complete and inaugurate the 100 mmscf/d Oredo, which is Pan Ocean’s gas supply project designed to utilise spare capacity in the Ovade gas plant, and continue the extension to the North and East via the Akwa Ibom-Enugu-Ajaokuta-Kano back bone gas pipeline project utilising the International Finance Corporation (IFC) loan Eurobonds and private funds,”the source added

The minister also said the government was committed to addressing the challenges in the oil and gas industry and providing the environment for investment. “Our desire is to address these challenges headlong in ensuring a revitalised sector capable of surviving the next millennium.

“The focus is to create the enabling environment being one of Africa’s topmost emerging markets while ensuring Nigeria’s energy and economic security. Nigeria remains committed to providing the enabling environment and incentive to investor in the oil and gas sector with guaranteed profit,” she said.

The Minister of Power, Prof Chinedu Nebo, told The Nation last week that he was working with Mrs. Diezani Alison-Madueke to find a sustainable solution to gas supply challenges facing the sector.

Nebo said the two ministries were mapping out strategies to ensure that gas supply deficit to power plants is tackled.

He said one of the strategies is to motivate the gas producing and supply companies by providing incentives for them as well as make the cost and price of gas competitive to encourage producers and investors in the sector.